TLDR
- ADA fell 6.67% to $0.86 following Bitcoin’s decline but maintains bullish structure
- Large holders accumulated 130 million tokens while smaller investors sold positions
- Mean coin age trending upward indicates network-wide accumulation phase beginning
- Technical analysis targets $1.20 if psychological $1 resistance level breaks
- Analysts project potential $2.05 price target by end of 2025
Cardano price action shows resilience despite recent market volatility, with institutional investors increasing their positions as the altcoin approaches another test of the crucial $1 resistance level.
The cryptocurrency declined 6.67% over three days, falling from $0.93 to $0.86 as Bitcoin dropped 4.6% from $117,000 to $111,500. This pullback followed Bitcoin’s weekend decline that extended into Monday trading.
Despite the recent correction, Cardano’s daily chart maintains a bullish structure with elevated trading volume throughout August. The weekly performance demonstrates strength with a 13% rally from $0.70 support to reach $0.81.
ADA previously tested $1 resistance on August 14 but failed to break through. Technical indicators suggest another attempt is likely, with Fibonacci extension levels pointing to a $1.20 target if the psychological barrier falls.
Cardano Price Prediction
On-chain data reveals strong institutional interest in Cardano despite broader market uncertainty. Wallets holding 10-100 million ADA tokens added 130 million coins in recent days while smaller holders reduced exposure.
This divergent behavior highlights growing confidence among large investors. Mean coin age has started trending higher over the past two weeks after months of declining values, indicating a shift from distribution to accumulation.
The metric tracks average token age across the network, with rising trends signaling holder conviction. Dormant circulation remains low throughout August, suggesting profit-taking pressure has not materialized despite many investors being in profit.
Network activity continues at robust levels with 2.6 million daily transactions in August. The first half of 2025 processed approximately 450 million transactions, demonstrating sustained ecosystem usage.
Technical Outlook Points to Potential Breakout
The 180-day MVRV ratio shows many Cardano holders currently sit in profit, creating potential selling pressure. However, circulation metrics indicate this threat has not yet emerged.
Key technical indicators support bullish momentum. MVRV Z-scores above 0.4 and rising funding rates suggest healthy demand-supply dynamics. Long-term futures open interest reached $1.44 billion, reflecting institutional commitment.
Development activity maintains a strong 80.86 score, significantly outpacing Ethereum’s 25.05 rating. Daily active addresses remain steady throughout 2025 despite transaction volume declining 90% from November peaks.
Long-term holders demonstrate conviction with many expecting over 80% ETF approval probability. These investors maintained positions during recent rallies rather than selling, contrasting with previous cycle behavior.
Price projections vary widely among analysts. Coinpedia suggests ADA could reach $2.05 by year-end under optimal conditions including ETF approval and retail adoption. Yahoo Finance projects an average $0.945 price, representing 79% upside from current levels.
The immediate resistance at $0.884 must break for continued upward movement toward $1.01-$1.15 targets. Current positioning shows strong support above key levels with growing institutional sentiment providing breakout foundation.
